Jump to content
Sign in to follow this  

Report: Marchionne to ask Fiat stockholders to demerge the company

Recommended Posts

Report: Marchionne to ask Fiat stockholders to demerge the company

by Jonathon Ramsey (RSS feed) on Sep 14th 2010 at 9:00AM

Fiat S.p.A is a conglomerate divided into Fiat Autos and Fiat Industrial, the two combining to own or control well over 20 companies. The auto side includes Alfa Romeo, Ferrari and Maserati, Magnetti Marelli and Fiat Powertrain Technologies. The industrial side controls companies like Iveco and Case New Holland, the latter being the second largest producer of agricultural equipment in the world after Deere & Company.

Fiat CEO Sergio Marchionne, citing the divergent customers, strategies, capital needs and potential alliance partners of the two divisions, is asking shareholders to approve a demerger. If the shareholders go for it, the 111-year-old company would divide into Fiat Auto S.p.A. for the auto side and Fiat Industrial S.p.A. for the remainder.

The division of the company was approved by the board in July and shareholders have until this Thursday to make up their minds about which way to vote. If the yays have it then the two companies will be standalone entities as of January 1, 2011. Shareholders would get one share in each of the companies for every share they currently hold. Analysts are cautious but supportive of the move, which will probably be the strongest test yet of Marchionne's long-term plan for Fiat.




Share this post

Link to post
Share on other sites

Your content will need to be approved by a moderator

You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets



Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.